Consumer Discretionary
The merger spread has widened significantly since Apollo Global Management’s all-cash offer for TEN was first disclosed (currently stands at 18% having hit 37% in May). So, is the TEN situation simply a victim of the current market disruption or is there something more to this spread? Robert Sassoon assesses the regulatory risk (low) as well as the risk of APO reconsidering the transaction (unlikely). Assuming the transaction closes by the end of the year, there remains considerable IRR to game in the 30-55% range, but even if the deal closes in 1Q23 you are still looking at an IRR in excess of 20%.
Edition: 137
- 10 June, 2022